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Q41. For a firm facing a downward-sloping demand curve, the marginal revenue is not equal to the price of the good. The price of the good is always higher than or equal to the marginal revenue. The average revenue is equal to the price of the great (…View the full answer
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Transcribed picture text: 41) Which of the following is true for a firm through a downward-sloping demand also curve for its product? A) Price, average revenue, and marginal revenue are all equal. B) Price, average revenue, and also marginal revenue are all various. C) Price amounts to average revenue however is better than marginal revenue. D) Price equals average revenue but is less than marginal revenue. 42) Which of the complying with IS TRUE around a monopoly A) it is the only producer of a good and also no various other firm have the right to (or is allowed to enter and also contend B) whenever before the enattempt of brand-new firms is denied, it creates a monopoly C) once a firm becomes the leading power in the industry, it is known as a monopoly D) monopolies are illegal and antitrust laws prevent/destroy monopolies 45) The Herfindahl-Hirschman Index is one factor used to determine whether a merger between 2 firms must be permitted. Which of the complying with statements about the value of the Index for a provided market is true? A) If a merger would result in an Index worth much less than 1,500, the merger would certainly not be challenged. B) If a merger would bring about an Index worth of 1,500 or more, the sector would be considered a syndicate and the merger would certainly be tested C) If a merger led to an Index of between 1,500 and 2,500, and the HHI enhanced by more than 100 points, the sector would be considered competitive and also the merger would not be tested. D) Ifa merger would increase the Index by 100, the sector would certainly be taken into consideration a syndicate and also the merger would certainly be tested. 43) Coca Cola supplies a mystery formula in their sodas and also after decades, no one has actually figured it out. Does it make Coca Cola a monopoly? A) Yes, because they are the just producers of a distinct taste of soda. B) Yes, because the trick formula acts as a barrier to enattempt. C) No, because we have to take into consideration it in the sector for soda wbelow there are other producers. D) No, bereason the key formula will certainly be ultimately revealed and then other producers can copy it. 44) For a natural monopoly to exist, A) a firm should continually buy up its rivals. B) a firm's long-run average price curve must exhibit diseconomic climates of scale beyond the financially eflicient output level. C) a firm's long-run average expense curve must exhilittle bit economies of scale throughout the pertinent variety of market demand also. D) a firm must have a government-imposed barrier.